KARACHI, Oct 9: The KSE 100-share index on Tuesday soared by 6.40 per cent boosted by the revival of foreign fund buying on the perception of a robust economy and reopening of the floodgates for the inflow of dollar to reinforce it. Forward counter also emitted bullish sparks where bullish hella was declared in three shares.

Volume figure jumped to a record level of 168 million shares as the scramble for choice scrips was further intensified and it appeared pretty hard to get few of them amid market talk of shrinking floating stock.

However, Tuesday’s 71 point rise in the KSE 100-share index at 1,173.53 was not that big but viewed in the backdrop of war scenario it is massive and speaks of the courage of conviction of those who initiated the run-up in a terribly bearish external outlook. The market capitalization rose by a hefty figure of Rs.15 billion at Rs.293 billion.

The KSE 100-share index had shown an all-time single session gain of 133.49 point on June 3, 1998, 126.93 points on June 26, 1998, 90.18 points prior to these records and several others in between.

An idea of strong speculative buying may well be had from the fact that emergency clearings were ordered in three out of 12 forward shares as their prices have risen by limit-gain of Rs.1.50 in a session and trading was temporarily suspended to allow the settlement of outstanding dues. The buying spree seeks to bring home the fact that there is no looking back war or no war, one broker said.

The rally led by the foreign funds and local financial institutions was reminiscent of boom conditions of the mid-90s and analysts at the W.E. Financials predicts it could be sustained as most of the basic fundamentals have already undergone a major change on the positive side.

Although all the leading shares, notably PTCL, PSO, Hubco, Fauji Fertilizer and Engro Chemical and several others showed across-the-board gains, taking in their wings most of the second-liners, heralding the advent of sustained bull-run, a section of leading brokers was sceptical about the rally that came in the backdrop of US attack on Afghanistan.

“The rally may be inspired one in a bid to demonstrate that the market has discounted the Afghan factor”, says a leading broker, adding “its timing, unprecedented boost in share values, massive volume don’t quite fit in the war scenario and the local civil unrest”.

No one could dispute the fact that the economy will certainly gain the needed push in the months to come if the foreign credit lines were not choked but what is the guarantee that the present political line up could prove lasting after the war ends, some other asks.

But the presence of foreign funds and, that too, in a big way indicate that most of them may “not be fools to take long stakes”, they add.

Plus signs dominated the list as most of the leading shares virtually raced towards their pre-reaction levels under the lead of Al-Ghazi Tractors, Shell Pakistan, Engro Chemical, PSO, Pakistan Oilfields, BOC and Lever Brothers, which recovered Rs.4.00 to 39.00 each.

Other good gainers were led by Orix Leasing after a good cash dividend of 25 per cent plus bonus shares of 20 per cent, Adamjee Insurance, Kohinoor Weaving, Cherat Cement, Dawood Hercules, Fauji Fertilizer, ICI Pakistan, Knoll Pharma and Tri-Pack Films, which rose by Rs.2.00 to 3.00. The list was strewn by many other notable gains.

Losers were led by Lawrencepur Woollen and Abbott Lab, falling by Rs.1.05 to 3.00, while all others fell fractionally.

Trading volume rose to a year’s high of 168 million shares from the previous lowest-ever 17 million shares as advancing shares held a strong lead over the losing ones at 109 to 29, out of 168 active.

Bulk of the support was confined to mega issues, notably PTCL, up Rs.1.40 at Rs.14.90 on 94 million shares, more than a half of the total, followed by Hub-Power, higher by Rs.1.25 at Rs.14.25 on 35 million shares, PSO, sharply higher by Rs.8.35 at Rs.105.80 on 11 million shares, Fauji Fertilizer, up Rs.2.35 at Rs.36.25 on 6 million shares and Sui Northern Gas, firm by 70 paisa at Rs.8.15 on 4 million shares.

Other actives were led by Engro Chemical, up Rs.4.90 on 3 million shares, Ibrahim Fibre, higher by Rs.1.20 on 2.933 million shares, Adamjee Insurance, up Rs.2.55 on 2.155 million shares, Deewan Salman, higher Rs.1.15 on 1.606 million shares and MCB, up Rs.155 on 1.256 million shares.

FUTUTRE CONTRACTS: Forward counter also followed the lead of the ready section where speculative issues rose sharply under the lead of PSO, which recovered Rs.4.75 equivalent of three bullish hella followed by Engro Chemical and Fauji Fertilizer, which encountered single hella respectively, up by Rs.2.30 and 1.70. Others, which showed good gains were led by ICI Pakistan, Hub-Power, Nishat Mills, MCB and PTCL, which rose by one rupee to Rs.1.45.